Labour Court Database __________________________________________________________________________________ File Number: CD95448 Case Number: LCR14963 Section / Act: S26(1) Parties: HEALTH BOARDS AND LOCAL AUTHORITIES (Represented by THE LOCAL GOVERNMENT STAFF NEGOTIATIONS BOARD) - and - LOCAL AUTHORITY CRAFT GROUP OF UNIONS |
Dispute concerning the introduction of fortnightly pay-path for craft workers.
Recommendation:
The Court fully recognises the diverse arrangements that employees
have in place as a consequence of the pattern of their wage
payments and the feelings which can be created where it is
proposed that the pattern and method of payment be changed.
However, the proposals concerned have got to be considered in
light of the severe financial constraints on the local authorities
and health boards. It is imperative that in the current situation
these organisations carry out their administration work in the
most efficient and cost effective manner, if they are to be able
to deliver the services necessary and secure employment.
For the changes proposed to be accepted it is necessary to ensure
that employees are fully informed of the impact of such changes
and the arrangements put in place to ensure the changes do not
adversely affect the pay of the employees.
Accordingly to meet the needs of the local authorities and Health
Boards and take account of the concerns of the employees the Court
makes the following recommendations:-
1. That the employees concerned accept the introduction of
fortnightly pay-path.
2. That to assist acceptance of (1) above and enable a smooth
transition to the new arrangements the consequences of the
change be clearly outlined together with the arrangements put
in place to ensure that there is no adverse effect on pay.
3. That on a red-circle basis the employees concerned retain the
time-off on pay days.
4. That the loan suggested be increased to £275 to be repaid
over a period of 104 weeks in equal instalments of £2.64 per
week.
Division: Mr McGrath Mr Pierce Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD95448 RECOMMENDATION NO. LCR14963
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
HEALTH BOARDS AND LOCAL AUTHORITIES
(REPRESENTED BY THE LOCAL GOVERNMENT STAFF NEGOTIATIONS BOARD)
AND
LOCAL AUTHORITY CRAFT GROUP OF UNIONS
SUBJECT:
1. Dispute concerning the introduction of fortnightly pay-path
for craft workers.
BACKGROUND:
2. Since the 1970's the pay rates for craftsmen in Local
Authorities and Health Boards have been reviewed periodically
by reference to an agreed set of analogues in semi-state and
private employments. In 1993 the analogue review increase
was agreed between the parties as £6.81 per week with the
date of implementation as 1st April, 1994, subject to the
parties reaching agreement on productivity and flexibility
measures. Following local discussions and conciliation
conferences held under the auspices of the Labour Relations
Commission, management indicated that it was seeking the
introduction of fortnightly pay-path in all Health boards and
five Local Authorities. Management also sought the
discontinuance of time-off arrangements for the cashing of
pay cheques. The proposals were balloted on by the Union
membership and were rejected. The dispute was referred to
the Labour Relations Commission and conciliation conferences
were held on the 11th January and 2nd May, 1995. At
conciliation the Union indicted that it was prepared to
accept the principle of weekly pay-path with existing
time-off arrangements to be retained. Management rejected
the proposal. Further agreement was not possible and the
dispute was referred to the Labour Court by the Labour
Relations Commission on the 28th July, 1995. A Court hearing
was held on the 2nd October, 1995.
UNIONS' ARGUMENTS:
3. 1. Management's proposals for fortnightly pay are not
acceptable. They have been balloted on twice previously
and were rejected by a substantial majority of the
workforce who have deep rooted objections from personal
experience to the introduction of this measure, in
particular the fortnightly aspect.
2. In the event of overall acceptance of pay-path,
craftworkers will be required to sign authorisation
forms to enable employees make wage payments to a
designated financial institution. Therefore, if there
is to be agreement on this issue the confidence of
individual craftworkers in the employments must be
obtained.
3. Throughout negotiations the Unions have proposed that if
pay-path is to be introduced, it should be implemented
on a weekly basis. While clearly less ideal from
management's perspective nevertheless it would be a
substantial concession and provide very good value for
the £6.8 increase. The time-off facility, where such
arrangements exist, must also be maintained.
MANAGEMENT'S ARGUMENTS:
4. 1. The change in pay-method frequency is an area where
tangible cost-savings in administration can be achieved
without any adverse effects on the earnings of the
grades concerned. Under the new system staff wages will
be credited by electronic transfer to each worker's
account.
2. The issue of fortnightly pay-path has already been the
subject of a Labour Court hearing and subsequent
recommendation concerning nursing personnel (LCR14031
refers). Following discussions with the Unions
representing non-nursing personnel agreement was reached
on the details associated with its implementation and
the new system becomes operational in early October,
1995. Management is seeking to move all weekly cheque
paid employees in the Health Service to fortnightly
pay-path and is currently discussing the issue with
ambulance and non-nursing personnel.
3. Every effort has been made to address any difficulties
encountered by the Unions regarding pay-path
introduction. Management is willing to make an advance
to staff who request it to ensure the move from weekly
to fortnightly frequency. The Bank at a briefing
session organised by the Board, addressed various issues
of concern to the Unions, including Bank charges.
4. It is unreasonable of the Unions to withhold their
agreement to a measure which will enable the Health
Boards to effect a small contribution to offset the
estimated £.75 million additional cost of financing the
£6.81 per week increase.
RECOMMENDATION:
The Court fully recognises the diverse arrangements that employees
have in place as a consequence of the pattern of their wage
payments and the feelings which can be created where it is
proposed that the pattern and method of payment be changed.
However, the proposals concerned have got to be considered in
light of the severe financial constraints on the local authorities
and health boards. It is imperative that in the current situation
these organisations carry out their administration work in the
most efficient and cost effective manner, if they are to be able
to deliver the services necessary and secure employment.
For the changes proposed to be accepted it is necessary to ensure
that employees are fully informed of the impact of such changes
and the arrangements put in place to ensure the changes do not
adversely affect the pay of the employees.
Accordingly to meet the needs of the local authorities and Health
Boards and take account of the concerns of the employees the Court
makes the following recommendations:-
1. That the employees concerned accept the introduction of
fortnightly pay-path.
2. That to assist acceptance of (1) above and enable a smooth
transition to the new arrangements the consequences of the
change be clearly outlined together with the arrangements put
in place to ensure that there is no adverse effect on pay.
3. That on a red-circle basis the employees concerned retain the
time-off on pay days.
4. That the loan suggested be increased to £275 to be repaid
over a period of 104 weeks in equal instalments of £2.64 per
week.
~
Signed on behalf of the Labour Court
15th November, 1995 Tom McGrath
T.O'D./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.